The Nexus Between Economic Growth and Carbon Emission in Tunisia: Evidence from Nonlinear Autoregressive Distributed Lag Model in the Context of Renewable Energy

Abstract

This chapter utilizes the Nonlinear Autoregressive Distributed Lag (NARDL) model to examine the relationship between economic growth, carbon emissions, and renewable energy in Tunisia. The analysis reveals a complex interplay between economic activities and emissions, highlighting a nonlinear effect of economic growth that fluctuates significantly. While short-term economic growth is generally associated with increased emissions, long-term trends indicate the potential for stabilization or even reduction as Tunisia increases its investment in renewable energy. The findings emphasize the need for robust, targeted policies that address these asymmetries and nonlinearities. Future research should prioritize sector-specific studies, enhanced data collection, and comparisons with other developing countries to further enhance understanding and inform policy development.